EXERCISE #2: JOHNSON IMAGING, INC.
You have obtained the following Johnson Imaging data related to MRI
production:
Table 3.9—Johnson Imaging Data
Model Display
(pixels)
Unit Cost
A 5,200 50,000
B 6,300 70,000
C 9,000 160,000
D 7,500 140,000
E 13,000 225,000
Assuming that pixel display is the independent variable and cost the
dependent variable, use the regression sheet to document the data.
1. What is your estimate of the cost of an MRI unit that displays a 12,500-pixel
image?
2. Determine the coefficient of determination (r2).
3. Determine whether to use this equation for estimating purposes. (yes/no)
